According to an article in the
Chicago Tribune, "IRS investigators are finding compliance problems at about 65 percent of the companies they have audited over the past year...Typically, mistakes are being made at midsize to smaller companies that don't have the personnel or financial resources to keep up with the tax code and law changes, IRS officials said...Plan-loan mistakes are very prevalent and very problematic..." When in doubt about how to handle operational aspects of their plan, such as loans, it is worthwhile for plan sponsors to contact an experienced third party administrator with their questions.
Full article.